INTRODUCTION
Operation risk management is an essential part of business because firms cannot operate without taking risks. Risk is commonly associated with uncertainty, as the event may or may not occur. Risk implies exposure to uncertainty or threat (Kannan and Thangavel, 2008); and ‘a decision to do nothing explicitly avoids the opportunities that exist and leaving the threats unmanaged’ (Joel, 2011). Traditionally, risk has been viewed as negative consequences and unfavourable events. The consideration of risk from the negative perspective is restrictive and misleading for two main reasons. First, uncertainty may manifest in either negative (threat) or positive (opportunity) form, or both; and second, the way a risk is perceive influences the manner in which it is handled (Jaiye, 2010). Managing risks from negative perspective may result to complete omission of opportunities (benefits/gains) in the event being considered. However, perspectives on risk differ, as the risk definition depends on and is affected by the risk observer (Dozie, 2010). Moreover, risk sometimes entails some economic benefits, as firms may derive considerable gains by taking risk. Business grows through greater risk taking. Risk is, therefore, integral to opportunities and threats which may adversely affect an action or expected outcome (Dozie, 2010). Moreover, getting rid of risk undermines the source of value creation; thereby truncates potential opportunities (Joel, 2011). In essence, to business enterprise risks are ‘uncertainty that matter’.
Therefore, this research work argue that it is important to investigate whether operational risk management in Nigeria banks can be used strategically as competitive resources to enhance organisational performance in service firms as they do in the manufacturing sector.
Writing on operational risk management is very important, because it’s concerned with creating all of the products and services upon which we depend. Exciting because, it’s at the centre of so many of the changes affecting the world of business. Business organization that is aim at having upper hand in the competitive environment needs to ensure effective and efficient operational risk management that will command the satisfaction of its customers. The research topic is challenging because, the solutions that we find need to work globally and responsibly within society and the environment. And everywhere, because every service and product that you use.
Some attempts have been made to conduct research on the impact of operational risk management related activities on the customer satisfaction, Sit, Owusu-Frimpong (2009); Kotler, Armstrong, Saunders and Wong (2009) among others. However, many of these earlier studies were based on manufacturing companies and they have not been effective in Nigeria. This recognition, has in turn, placed an emphasis on the question of where and how operational risk management related activities have influences the customers satisfaction and operational performance of service firms. This research work is an attempt to address this question.
Chapter One
Introduction
Background of the Study
Statement of the Problem
Objectives of the Study
Research Questions
Research Hypothesis
Significance of the Study
Scope of the Study
Limitations of the study
Operational Definition of Terms
Chapter Two
Literature Review
The Concept of Operation
Key Issues in Operations
Building Success with Operations
Overview on Operational Risk Management
Determinant Factors for the Operational Risk
Operational Risk Categories
Operational Risk Management in the Bank
Recent Development in the Nigerian Banking Industry
Regulatory Initiatives To Promote Operational Risk Management
Failure of Operational Risk Management
Theoretical Framework
Chapter Three
Research Methodology
Introduction
Research Design
Population of Study
Sample and Sampling Techniques
Data Collection Instrument
Procedure for Data Collection
Data Analysis
Chapter Four
Data Presentation & Analysis
Introduction
Questionnaire Results
Data Analysis and Interpretation
Chapter Five
Summary of Findings, Conclusion and Recommendations
Summary of Findings
Conclusion
Recommendations